Fixed Income Analysts Update June 6, 2011

Transcription

1 Fixed Income Analysts Update June 6, 2011

2 This presentation may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company s results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company s annual report available on its Internet website ( These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements. More comprehensive information about PSA Peugeot Citroën may be obtained on its Internet website ( under Regulated Information. 2

3 Highlights 3,6 M vehicles sold worldwide in 2010 (+13%) Strong recovery: all entities contributing in Group recurring operating income: 1 796m versus loss of 689m in 2009 Turnaround in automotive profitability: recurring operating income of 621m versus loss of 1 257m in 2009 Solid generation of Free Cash Flow of 1 110m Net Debt reduction from 1 993m at the end on 2009 to 1 236m at the end of 2010 Full repayment of the French State loan anticipated 2010 Dividend of 1.1 per share Globalization on track: sales volume outside Europe at 39% in 2010 Success of distinctive products (Citroën DS3, Peugeot RCZ, Peugeot 3008, Peugeot 508) 3

4 Group results Strong recovery in 2010 In million euros 2009 H1 H Revenues Recurring operating income (689) % of revenues -1.4% 4.0% 2.4% 3.2% Non recurring operating income and (expenses) (727) (69) 9 (60) Operating income (1 416) Net financial income (expenses) (520) (241) (188) (429) Income taxes 589 (227) (28) (255) Share in net income of equity affiliates Consolidated Net Income/(loss) (1 274) Net Income, Group share (1 161) Earnings per share (in euros) (5.12)

5 Results by division Significant increases in all divisions Recurring operating income In million euros 2009 % margin H1 H % margin Automotive (1 257) -3.3% % Faurecia (92) -1.0% % Gefco % % Banque PSA Finance Others businesses and eliminations PSA Peugeot Citroën (689) -1.4% % 5

6 Worldwide market share 14.2 % 13.8 % 3.3 % 3.4 % 13.5 % Europe China* % 5.4 % 2.9 % 2.8 % * Cars only Latin America 2009 Russia

7 Automotive recurring operating income Performance Plan delivers 1.5bn ahead of 1.1bn target Market share increase and positive net price effect In millions euros Production & procurement R&D +9 Others Market share volumes Warranty, SG&A, fixed costs, own network 2010 Market demand volume* Market mix Input costs Currency Net price effect (1 257) +331 (142) (168) +393 *Including stock variations Operating environment +414 Performance

8 Solid financial structure Weighted average remaining maturity: 4.5 years Pro forma gross debt in nominal value at end excluding BPF, undrawn credit lines, short term liabilities & other adjustments Full repayment of French State loan in February and April 2011 Renewed 2.4bn undrawn credit lines maturing July 2013 In million euros Baa3 / Stable BB+ / Stable

9 Q revenues: +10.2% All divisions contributing to the increase In million euros Q1-10 Q1-11 Automotive % Faurecia* % Gefco % Banque PSA Finance % Other businesses and intra-company eliminations (1 135) (1 258) - Total revenues % * +15.1% like for like basis at constant exchange rates 9

10 Progress on our ambitions Globalization: On track for 50% of sales volumes outside Europe by 2015 Step ahead: Enhancing the PEUGEOT and CITROËN brand images and pricing power Operational excellence: Upgrading the automotive Performance Plan to 3.7bn ( 3.3bn) 10

11 Globalization on track Sales volumes outside Europe grew from 32% to 39% on track to 50% by % +39% +27% % China Latin America Russia CKD 11

12 Globalization on track China DPCA 650m 1 of investment Record performance and first dividend payout 5% market share in 2015 First dividend by DPCA: MRMB589 paid on 28 April 2011 Vehicle sales up 38% to in 2010 Third plant to come on stream in 2013 Full capacity of units 2010 PEUGEOT 408 CITROËN C % Group share of c.11bn RMB@8.5/euro PEUGEOT 508 CHANG AN Final approval expected shortly 3% market share targeted 500m 2 of investment DS by CITROËN brand to be launched in 2012 Development of LCVs Production capacity of 200k vehicles p.a. at Shenzhen 2 50% Group share of c.8.4bn RMB@8.5/euro DS by CITROËN LCV 12

13 Globalization on track Latin America 700m* turnaround program launched 7% market share targeted in 2015 Break-even expected in new vehicles over next 4 years Platforms rationalised from 4 to 2 Threefold increase in volumes by model 2010 PEUGEOT HOGGAR CITROËN C3 AIRCROSS 2011 *100% Group owned PEUGEOT 408 CITROËN C3 PICASSO 13

14 Globalization on track Russia All Group activities present with Brands, Banque PSA Finance & Gefco 330m* investment 2 production start ups in 2010: C segment cars in April, SUVs in September Full capacity of at Kaluga in 2012 PEUGEOT 308 CITROËN C PEUGEOT 4007 CITROËN C-CROSSER *70% Group share of 470m 14

15 Globalization on track India Entry to India now underway PEUGEOT brand to be launched Mid-sized sedan to be produced locally Plant location under review 2011 : location to be chosen between 2 regions PEUGEOT Mid-sized sedan 15

16 New model momentum (1/2) 2010 PEUGEOT RCZ Leader in Europe on its segment units sold in 2010, units in Q CITROËN DS3 40% new customers units sold in 2010, units in Q Average price of vs for C3 CITROËN C4 C4 & new C4: +31% units vs Q PEUGEOT 508 PEUGEOT 508 SW CITROËN DS4 Objective: units sold in 2011, units sold in 2012, of which units in China c units end March, well above objectives Residual value 36 months, km of 44%, vs 35% (previous model) Second model of the DS line Launched in Q CITROËN DS5 Third model of the DS line First world reveal in Shanghai motorshow on 18 April 16

17 New model momentum (2/2) Q1-09 Q1-10 Q1-11 C&D segments 36% 39% 41% A&B segments 48% 44% 41% of which distinctive models (DS4 & DS5 to come in 2011 after Q1) 2% 7% 9% Average age: LCV: 3.0 years PSA range average age (private cars) Upturn in the European light commercial vehicle market confirmed with 10% growth in Q1 11 PSA Peugeot Citroën: European leader on the LCV market with a 21.5% share 17

18 Step Ahead CO 2 emissions and hybrid technologies 1 million vehicles 120g CO 2 /km in 2012 vs in 2010 Q Diesel 207, C3 & DS3 99g CO 2 /km Stop & Start up to -15% CO 2 /km Gasoline 1l. 3 cyl 99g CO 2 /km 85% Gasoline and diesel CITROËN C-Zero 2009 Electric vehicle Full hybrid diesel «HYbrid4 diesel» Hybrid Plug-in < 50g CO 2 /km 15% Electric and hybrid Q PEUGEOT i0n PEUGEOT 3008 hy4 Battery Packs Generators Power Electronics Electric Machines Chargers 50/50 joint venture to lead the way on new generation of hybrid components 18

19 Performance Plan delivery & upgrade Performance Plan target raised to 3.7bn Performance Plan announced in 2009 New target 2.6bn 3.3bn 3.7bn Main 2010 cost savings Target 1.1bn 1.5bn 2.2bn Capacity utilisation in Europe 80% 90% 105% Development productivity (2009 base 100) Repeat components - 30% -11% 38% -20% 50% Procurement by key suppliers 25% 35% 50%

20 Impact of events in Japan PSA is carefully tracking the evolving situation Disruptions controlled and prospects clarified Working closely with auto equipment OEMs to minimize consequences on our clients Events in Japan will reduce Automotive recurring operating income by an estimated 150m in H Plants making diesel-powered vehicles partially impacted in weeks 12 and 13 Product range and production adjustments Extra-delays on some products lines 20

21 2011 Outlook 2011 Outlook * (as of FY 2010 results) Automotive recurring operating income in 2011 is expected to be above the level of 2010, with a 1.1 billion contribution from the Performance Plan, which should more than offset significant increases in raw material and other input costs Faurecia, Gefco and Banque PSA Finance to deliver increased recurring operating income Free Cash Flow, after higher capitalised R&D and capital expenditure of 3 billion, is expected to be positive Progress with our globalization projects in China, Latin America, Russia and India 2011 Outlook 2011 outlook confirmed Automotive H ROC comparable with H ROC excluding impact of Japan * Based on market assumptions as of Feb. 9 th 2011 (Europe stable, China +c. 10%, Latin America +c. 4%, Russia +c. 15%) 21

22 BANQUE PSA FINANCE 22

23 The dedicated financial services partner to Peugeot and Citroën Close and exclusive partnership with Peugeot and Citroën brands Broad range of financing products for both brands' commercial network Potential market of 3.1m assembled vehicles in 2010 Comprehensive, structured and differentiated offer to final customers: Marketed in collaboration with both brands Valued support for brands as financing increases loyalty and speeds up renewal Car dealers customer relationships structured by combined marketing approach ( EFFICAR method) Highly efficient Point of Sale IT systems, allowing dealers to quote global offers (Vehicle/Finance/Services) at high speed and with high level of automation: IT infrastructure consolidated with the brands dealer network: a key efficiency and cost reduction driver Continuous geographic expansion to support the Group s international growth 23

24 on arm s length terms Autonomous operational management Asset quality management: Wholesale credit management, retail acceptance policy, recovery methods Own credit scoring with different, internally-developed score cards for new and used cars, consumer and commercial customers, credit loans and leasing Price setting Marketing strategy (market studies, product plan conception) Incentivization of dealers network No buyback obligations All buyback obligations retained by dealers or brands No financing from parent company and stable dividend policy Arm s length relationship enhanced by banking status 24

25 Resilient asset base during the crisis return to growth in 2010 Retail loans: 78% Wholesale loans: 22% BPF offers final and fleet customers a diversified range of financing solutions and related services. BPF provides Peugeot and Citroën dealers (own network and third party network) with financing for new and used vehicles and replacement part inventories. Loan book by segment In bn Wholesale Retail Outstanding loans increased by 4.3% in 2010 Increase in loan book reflects in particular the mix increase 25

26 Increase in retail & wholesale loan book Retail loans Wholesale loans Average duration of 42 months per contract. Strong customer selection maintained. Good control over inventory level with stable rotation rate (c.30 days). New Retail Financing nb of vehicles financed (in thousands of units) New Wholesale Financing nb of vehicles financed (in thousands of units)

27 Steady increase in penetration rates with further upside potential Steady penetration rate growth in retail financing over the years; strong H2 with 29% penetration Increasing penetration in new markets of Central & Eastern Europe and Latin America Worldwide retail penetration rates In % Retail penetration rates by geography In % 24,1 25,3 25,1 26,4 26,3 27,1 26,1 26,1 27,3 27,5 27,2 30,5 28,7 27,7 27,7 27,7 28,2 28, ,9 24,3 21,7 16, Note: Penetration rate defined as (new vehicles financed)/(psa PEUGEOT CITROEN new vehicle) Europe Central & Eastern Europe Latam Others(*) (*) China retail penetration rate not included. 27

28 Continuous geographic expansion in emerging markets OTHER WESTERN EUROPE RUSSIA Retail WORLDWIDE WORLWIDE FRANCE Wholesale nb of vehicles financed (in thousands of units) Central and Eastern Europe CHINA (1) LATIN AMERICA OTHER (2) (1) Not consolidated (2) Algeria, Turkey 28

29 Growth supported by increasing packaging of diversified financial services Number of contracts Service contracts FINANCING (Retail credit, Leasing, Long-term rental) LOAN RELATED SERVICES (life insurance, unemployment insurance ) x x 1.42x 1.41x x 1.34x CAR INSURANCE VEHICLE RELATED SERVICES (warranty extension, maintenance ) x 1.13x 1.17x Car insurance Loan-related services Vehicles-related services Number of services sold per financing 29

30 Consistently high profitability Robust net banking income growth Solid operating income throughout the crisis and strong contribution of services Net banking income (in m) Operating Income (in m) CAGR +3.0% Operating Income Services contribution Note: Accounts according to French GAAP from 2000 to 2003 and IFRS standards starting in , 2002 and 2003 restated from 247m, 315m and 411m respectively to exclude exceptional items. 30

31 Long standing best-in-class cost of risk (1/2) Cost of risk at 56bps for FY 2010 Cost of risk (as a % of average net loans) In bps Cost of Risk (total) Cost of Risk (recurring) H H H H H H H cost of risk integrates a non-recurring impact due to an adjustment of impairment rate on the Retail loan book in Southern Europe, to take into account a tougher than expected crisis. Excluding non-recurring items, recurring cost of risk was down y-o-y from 0.55% to 0.47% 31

32 Long standing best-in-class cost of risk (2/2) New Default Trend Retail (Individuals & small businesses) and Fleet 800 2,0% 700 Non Performing Loans ( m) ,5% 1,0% 0,5% New Default (%) ,0% New Default rate down from 1.65% in 2009 to 1.04% in 2010 NPL book stabilized since H Note: New Default (%) rate represents the amount of new non-performing instalments recorded in the month divided by total instalments collection during the period. 32

33 Strong capital base Consistent increase in capital ratios 40% dividend ratio maintained throughout the crisis payment of 140m in 2010 In m % 13.76% 14.21% 15% % 5% Prudential equity European Solvency Ratio Basel II ratio 0% 33

34 Increasingly diversified funding sources Stand-alone financing Diversification of funding sources Access to Capital markets, securitizations, bank loans (inaugural transaction in the US bond market in March 2011), Strong support from large, well diversified group of lending banks Access to European Central Bank financing Access to a state-sponsored program put in place during the crisis to ensure liquidity for French banks ( SFEF ) Sources of External Refinancing Capital Markets % 16% 22% 1% 1% 40% 39% 35% 8% 54% 59% 39% 55% 6% 5% m m 8 413m m Capital Markets Securitization * Including SFEF and ECB refinancing Bank facilities Others financing* Commercial paper Other short term EMTN Other bonds Other long term Short Term Long Term 34

35 Prudent liquidity management Matching of maturities between assets and liabilities At December 31, 2010, 71% of total financing with original maturity over twelve months Policy to secure a minimum 6 months of activity through cash and undrawn back-up facilities At December 31, 2010, Banque PSA Finance had access to sufficient financing to cover more than 7 months of activity without requiring any further financing At December 31, 2010: 8.7bn of available liquidity Maturing in 4.1% 2011 for 21%; in 2012 for 30%; in 2013 for 29% and in 2014 for 20% 7.4% 23.5% 5% 13.6% 13.7% 22.6% 35

36 Investment grade ratings Current ratings: Baa1 / Stable / P2 (outlook changed from Negative to Stable in February 2011) (PSA: Baa3 / Stable / P3) Current ratings: BBB / Stable / A2 (outlook changed from Negative to Stable in September 2010) (PSA: BB+ / Stable / B) Overall sound financial profile, low credit risk appetite and strong credit culture, conservative liquidity and capital management, and status as a fully regulated bank under French law. (S&P, December 2010) Note: The rating agencies have stated that financing companies owned by automobile manufacturers should generally not be rated more than two notches above the parent. 36

37 Strategic objectives Drive profitable growth through significant expansion in Brazil, China and Russia Maintain cost of risk at benchmark level Continuous focus on customer base quality to drive strong profitability Increase further customer loyalty Reinforced customer management program to increase repeat sales Increase profitable contribution of Services Product diversification, geographic expansion, internalization 37

38 APPENDIX 38

39 Automotive Record 3.6 million units sold in 2010 Turnaround in Automotive recurring operating income In thousands units 2009 H1 H Vehicles sold In million euros 2009 H1 H Revenues Recurring operating income (1 257) % of revenues -3.3% 2.5% 0.5% 1.5% Non recurring operating income and (expenses) (563) (66) 8 (58) Operating income (1 820) % of revenues -4.8% 2.2% 0.5% 1.4% 39

40 China DPCA* record sales performance at +38% Contribution to Group EPS of 70 cents 2009 H1 H Vehicles sold H1 H Share of net income (in million euros)* Earnings per share * Dongfeng Peugeot Citroën Automobiles (50/50 joint venture) 40

41 Faurecia Turnaround confirmed with margin of 3.3% in 2010 Strategic development with Emcon & Plastal acquisitions In million euros 2009 H1 H Revenues Recurring operating income (92) % of revenues -1.0% 3.2% 3.4% 3.3% Non recurring operating income and (expenses) (134) (2) (34) (36) Operating income (226) Net financial income (expenses) (166) (62) (55) (117) Consolidated income for the period (417) % of revenues -4.5% 1.6% 1.7% 1.7% Free Cash Flow (222) Net financial position* (1 401) (1 363) (1 197) (1 197) * End of period 41

42 Gefco Strong pick-up in revenues : +16% Solid margin of 5.9% In million euros 2009 H1 H Revenues PSA Peugeot Citroën Third parties Recurring operating income % of revenues 3.5% 7.1% 4.6% 5.9% Non-recurring operating income and (expenses) (27) Operating income

43 Banque PSA Finance Net banking revenue +5.9% and rise in new contracts 2010 cost of risk maintained at benchmark level Additional risk provision for Spain taken in H2 In million euros 2009 H1 H Net banking revenue Cost of risk (in % of average loans) 0.50% 0.47% 0.65% 0.56% Recurring operating income Number of new contracts (lease and financing) Total outstanding loans ( ) 22.4bn 23.4bn 23.4bn 23.4bn 43

44 Q1 2011: New car revenues analysis Strong product mix in Q In million euros Volumes % Price -2.0% Product mix Country mix +6.3% +0.1% FX +1.3% Others +0.5% % New car revenues New car revenues Q1-10 Q

45 Q1 2011: Sustained recovery at Faurecia, with revenues up 24% Increase driven by growth in North America and Asia Strong growth for the four business groups In million euros Q1-10 Q1-11 Automotive Seating % Interior Systems % Emissions Control Technologies Systems % Automotive Exteriors % Total Product revenues % Monolith revenues % Development, Tooling & Prototype revenues % Total revenues* % * +15.1% like for like basis at constant exchange rates 45

46 Q1 2011: Solid performance by Gefco Revenues up 16.1% at 977m Acquisition of Mercurio: portfolio diversification and extension of international footprint In million euros Q1-10 Q1-11 PSA Peugeot Citroën % Third parties % Total revenues % 46

47 Q1 2011: Banque PSA Finance Revenues up +2.8% in Q Sustained rise in new contracts up +4.1% In million euros Q1-10 Q1-11 Revenues % Total outstanding loans (end of period) Number of new contracts (lease and financing) 23.1bn * 23.9bn +3.5% % * 23.1bn end of period Q (vs 22.9bn on average Q1 2010) 47